2004 Supreme(AP) 384
Andhra Pradesh High Court
Judges : A.GOPAL REDDY
Surya Industries, Cuddapah - Appellant
Versus
Secretary, Ministry of Mines, Government of India, New Delhi - Respondent
Decided On : 03-29-04
Headnote:
Mineral Concession Rules, 1960 – Rule 55 –Mines and Minerals (Regulation and development) Act, 1957–Sections 30, 11, 5 – Remand order –writ jurisdiction –Whether the impugned G. O. Ms. issued by the State government is in accordance with the remand order passed by the Central government– Whether in view of alternative remedy of revision available to the petitioner this Court is precluded to exercise writ jurisdiction. – Held, Rule requiring reasons to be recorded by quasi judicial authorities in support of order passed by them is a basic principle of Natural Justice. – Justice bhagwati speaking for the Court observed:"if Courts of law are to be replaced by administrative authorities and Tribunals, as indeed, in some kinds of cases, with the proliferation of Administrative Law, they may have to be so replaced, it is essential that administrative authorities and Tribunals should accord fair and proper hearing to the persons sought to be affected by their orders and give sufficiently clear and explicit reasons in support of the orders made by them. – Then alone administrative authorities and Tribunals exercising quasi-judicial function will be able to justify their existence and carry credibility with the people by inspiring confidence in the adjudicatory process. – The rule requiring reasons to be given in support of an order is, like the principle of audi alterant partem, a basic principle of natural justice which must inform every quasi-judicial process and this rule must be observed in its proper spirit mere pretence of compliance with it would not satisfy the requirement of law. "– Order Accordingly
( 1 ) ON State government notifying the abandoned area to an extent of Ac. 16-23 cents in Pamapalli (v) District as being available for re-grant on 22-12-1988 under Section 59 of the mineral Concession Rules, 1960, the petitioner in WP No. 14774/1999 (hereinafter referred to as "the petitioner") submitted its application on 23-1-1989 for grant of mining lease for lime stone mineral over an extent of Ac. 14. 93 cents. Respondent No. 5 and two others also made their applications for grant of mining lease on the said date i. e. , 23-1-1989. On evaluation of the applications made by the petitioner, respondent No. 5 and two others, the State government in its Memo No. l41/m. III/91-3 dated 28-9-1991 directed the petitioner to file mining plan duly approved by the Indian bureau of Mines for an extent of Ac. 14. 93 cents in S. Nos. 137/1, 174/1 and 176/1 in parnapalli Village for a period of 20 years within six months from the date of receipt of the communication. The Respondent No. 5 and two others filed revision under Section 30 of the Mines and Minerals (Regulation and development) Act, 1957 and Rule 55 of mineral Concession Rules, 1960 questioning the rejection of their applications by the state Government through their Order no. l41/miii/91-2 dated 11-6-1993 before the first respondent, which was allowed on 14-12-1993 setting aside the order of rejection of the applications made by them with a direction to the second respondent to consider afresh all applications in accordance with law. On allowing the revision petition, third Government after evaluating the claims of all applicants as per Section 11 (3) of the Act recommended the application made by the petitioner for grant of mining lease through his proceedings dated 7-7-1994. The second respondent in its letter dated 19-8-1994 requested the first respondent for its approval as contemplated under Section 5 (1) of the Act. The first respondent sought clarification through its letter dated 19-12-1994, which was duly clarified by the second respondent in its letter dated 20-1-1995, On receipt of approval by the first respondent vide its letter dated 13-6-1995 the second respondent granted mining lease in favour of the petitioner in G. O. Ms. No. 171 Industries and Commerce (M. III) Department, dated 4-11-1995. Mining lease was executed in favour of the petitioner by the second respondent on 28-11-1995 on deposit of required amount, to which fifth respondent is also a signatory. On complying with all formalities, the second respondent issued proceedings dated 28-11-1995 authorizing the petitioner to commence the mining operations by delivering possession of the site. Since then the petitioner is conducting mining operations. The Respondent No. 5 and two others filed revision petition challenging the granting of mining lease in favour of the petitioner by the State government in G. O. Ms. No. 171 dated 4-11-1995 before the first respondent. The first respondent by its order dated 14-8-1998 set aside the grant of mining lease in favour of the petitioner and remanded the matter back to the State government for providing an opportunity of hearing and take into account the observations made by it in paragraphs 9 and 10 of the Final Order No. 165/93 dated 14-12-1993. Questioning the same, the petitioner filed WP No. 26221/98 and obtained interim orders to conduct mining operations in respect of the area which was leased out to it. Aggrieved by the interim orders passed in the said writ petition, the fifth respondent carried the matter in WA no. 495/99, which was disposed of along with WP. No. 26221/98 directing the second respondent to reconsider the matter as directed by the first respondent observing that there was no lease in favour of the petitioner, which was subsequently clarified in Review WPMP No. 31156/99 in WP no. 26221/98 dated 12-2-2001 preferred by the petitioner. In the light of the directions issued by the Division Bench of this Court while disposing of